ING Provisions Surge as Van Rijswijk Signals Worst Is Over
- Loan-loss provisions more than double from first quarter
- New CEO Van Rijswijk took over last month from Ralph Hamers
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ING Groep NV signaled the worst of the bad loan pain may be over after the largest Dutch bank said costs to cover souring debt more than doubled in the second quarter.
Chief Executive Officer Steven Van Rijswijk, who took over last month, stashed away 1.34 billion euros ($1.59 billion) to deal with expected defaults, bringing the total in the first half to about 2 billion euros. The new CEO said the number reflected an economic outlook that worsened during the quarter and a “sizeable” impact from a fraud case, and that provisions will likely come down from here.